Harmony Acquires 98.59% Of Hill 50
Release Date: 03/04/2002 12:21:50 Code(s): HAR
Harmony Gold Mining Co. Ltd.
ISIN No.: ZAE000015228
HARMONY ACQUIRES 98.59% OF HILL 50
Johannesburg, 3 April 2002 - Harmony today announced that the company has
successfully acquired a 98.59% fully diluted interest in Hill 50.
Harmony increased its offers to A$1.45 cash for each Hill 50 share, and
A$0.75 cash for each Hill 50 option on April 3, 2002. The company currently
has a shareholding of 98.57% of Hill 50 and a relevant interest of 98.76% of
the Hill 50 listed options. This follows the receipt of acceptances from
Colonial First State for its entire shareholding.
Accordingly, Harmony will now seek to commence compulsory acquisition.
Harmony's offers were increased by 5 cents in recognition of the recent
strength in the gold sector. From the date of the original Harmony offers
in December 2001, the gold price has increased from US$273/oz to US$305/oz.
This strength has been reflected in increased values of gold equities, with
the Australian Gold Index increasing by 35% during this same period.
Bernard Swanepoel, chief executive said: "The completion of this acquisition
provides Harmony with a well balanced portfolio of gold assets with critical
mass in Australia.
"Harmony will be producing in excess of 500 000 ounces per annum from its
three major operations in West Australia. The company holds extensive land
positions surrounding its three mine sites, and expects further increases to
its Australian reserve base from future discoveries in these highly
"In addition, the company is working towards bringing into production its
newly acquired Hill 50 assets in the Northern Territories.
"Harmony also looks forward to further growth in its Australian portfolio
through its 31.8% shareholding in Bendigo Mining NL. Bendigo is pursuing a
A$50 million project to develop, evaluate and bring into production the high
grade gold reefs, which occur beneath the extensive workings in the Bendigo
gold field, in Victoria. Harmony has the option to increase its stake in
this company to 51%."
Harmony's current annualised production totals 3.2 million ounces per annum,
with 2.7 million ounces from its South African operations, and 500 000
ounces from Australia.
For immediate release
3 April 2002
For further details contact:
Issued by Harmony Gold Mining Company Limited
Tel +27 11 411 2036
Fax +27 11 411 2169 Mobile +27(0)83 380 6614
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